What Actions Should Japan Take Next, Based on Insights from 50,000 People on the Climate Crisis (Part 2)

Dentsu Inc. regularly conducts the "Consumer Survey on Carbon Neutrality," with " dentsu carbon neutral solutions "—an organization within dentsu Japan (the domestic Dentsu Group) that promotes sustainability projects—serving as the research body.

This article features a discussion on the findings of the 14th survey among Yukari Takamura from the University of Tokyo's Future Vision Research Center, Mana Saza, Representative Director of SWiTCH, and Takeshi Araki from Dentsu Group Inc. In the second part, they deepened their discussion on future challenges based on observations from "COP29" (the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change), held in Azerbaijan in November 2024.

The Urgency of the Climate Crisis Felt at COP29

Araki: All three of us observed COP29 on-site. Did you gain any new insights from talking with participants from various countries?

Saza: The frequent use of the term "adaptation" (measures to avoid or mitigate damage from climate change impacts) was striking. While previous conferences focused mainly on mitigation measures, for people in countries directly affected by natural disasters, mitigation (policies aimed at reducing greenhouse gas emissions causing climate change) is no longer sufficient. Scientists also frequently discussed "how urban areas can adapt to climate change," and young leaders from various countries expressed a greater sense of urgency than ever before. For example, in Pakistan, Himalayan glaciers are melting, causing floods even when it isn't raining. A young Iraqi man shared that his father, a fisherman, lost his job due to the Tigris River's drought, forcing them to relocate and start a new life elsewhere. Discussions have already begun about who should bear responsibility for this situation (the impacts of climate change), and developing countries are calling for financial support. I believe that by actively participating in COP, Japanese companies can better understand the differences in perception between the international community and Japan regarding climate change countermeasures, and gain a clearer grasp of the international community's expectations for Japan.

Takamura: At COP29, the long-term goal for climate finance to support developing countries' climate action was a key agenda item. Developed countries agreed to increase their annual financial contributions to developing countries, through a broad range of sources including public funds, to at least $300 billion by 2035. As Mr. Saza mentioned, this stems from strong concerns about the adverse impacts of climate change. Voices were particularly strong from developing countries and more vulnerable groups like indigenous peoples, women, and youth.

Furthermore, regarding the "Public Survey on Carbon Neutrality," I also felt that participating in COP provides a valuable opportunity to rethink our awareness and actions. COP brings together people from different countries and positions. While Japan has robust infrastructure and can mitigate damage to some extent even when affected by climate change, developing countries and those in socially vulnerable positions cannot ensure resilience against its impacts. I believe COP is an important forum precisely to witness and hear about these realities.

Public-Private Dialogue Needed for 2035 Targets

Araki: How do you view the Japanese government's actions following COP29, Professor Takamura?

Takamura: Nations are currently preparing to submit their 2035 targets. The UK has already proposed an 81% reduction in greenhouse gas emissions compared to 1990 levels, Brazil a 59-67% reduction compared to 2005 levels, and the UAE a 47% reduction compared to 2019 levels.

Both Japan and countries still formulating their targets are prioritizing alignment with the "1.5°C goal." However, achieving the "1.5°C goal" requires not only reaching net-zero emissions around 2050 but also significantly reducing greenhouse gas emissions in the short term, by around 2030.

The Japanese government has proposed targets of a 60% reduction by fiscal year 2035 and a 73% reduction by fiscal year 2040 compared to fiscal year 2013 levels. However, its most recent reduction is only 23% compared to fiscal year 2013 levels. How can we reliably achieve the 2030 target (46-50% reduction)? How can we realize further reductions beyond 2030? Without serious policy consideration, these targets will remain pie in the sky. It is crucial that both the national government and civil society actively advance discussions on concrete policies and measures to steadily progress toward these goals.

Saza: Continuous support for regions after national policy formulation is also essential. We often hear from local governments that numerical targets are set without concrete implementation support. Achieving decarbonization goals requires the active participation of local communities and the establishment of effective support systems for SMEs, which account for over 99% of businesses.

Achieving the "1.5°C target" requires collaboration between SMEs and local governments

Araki: You mentioned the keywords "regions" and "SMEs." What do you think are the drivers to mobilize these two?

Takamura: Since the Japanese government declared its carbon neutrality goal in 2020, addressing climate change has become positioned as a core management issue for companies. For listed companies, investors and shareholders are also closely monitoring their actions. Companies are now required to address greenhouse gas emissions not only within their own operations but also across their supply chains and value chains. Corporate awareness of climate change measures has significantly shifted.

This impact extends to SMEs. Particularly due to measures taken by large corporations within their supply chains and value chains, a significant number of SMEs are now being asked to report their emissions and implement reduction measures. We hear from SMEs that while they recognize the need to pursue decarbonization, they lack both the manpower and funds, and are unsure how to proceed.

Furthermore, awareness of climate change issues tends to be lower in areas outside of major metropolitan areas. The challenge is how large companies can take the lead and collaborate with their SME suppliers, and how they can work together with local governments and regional financial institutions to advance these efforts. I believe that the national GX (Green Transformation) policy should also incorporate active support for regions and SMEs working on decarbonization.

Saza: I think what Professor Takamura said is really important. I hope local governments will make the most of their regional characteristics and do their best. I also hope companies will send out a strong message. I hope companies will promote their own initiatives and appeal to young people, who will be the new workforce, regarding environmental issues.

Araki: We also want to collect data more comprehensively through our "Consumer Survey on Carbon Neutrality" and use information dissemination to drive changes in awareness and behavior.

Takamura: Amid shifting international circumstances, we sometimes receive questions from corporate leaders asking, "What will happen to decarbonization efforts going forward?" I don't believe measures aimed at the 1.5°C target will easily be reversed. Climate change countermeasures are increasingly integrated into corporate management challenges, including for financial institutions. In particular, companies leading these efforts position decarbonization as an opportunity to create and develop new businesses. Rather, I believe the real question for each company is "how will we respond as a business" amidst these changing circumstances, demanding management and strategy with a medium-to-long-term perspective. It is businesses and local governments that can actually drive and achieve carbon neutrality. I hope they will advance their efforts with this understanding.

Some municipalities have attracted data centers powered by renewable energy, and examples of companies and local governments collaborating on climate change countermeasures are also drawing attention. Comprehensive measures involving not only large corporations but also local communities and small and medium-sized enterprises will likely be increasingly demanded going forward.